The battle between bond yield and the stock market has everything to do with the week that lies ahead. This will be the case especially if the treasury yields gets a push from the economic data. For this, the economic data has to be of a positive nature.
Following the rise in the bond yields that took place last week, the speakers of the Fed are what the stock market relies on primarily. The chairman of Fed, Jerome Powell, is a crucial figure. This is when he makes an appearance at the summit of the Wall Street Journal which is to be held this Thursday.
Stock Market Vs Bond Yield
The increase in the rates of interest in the month of February surprised the stock investors. The benchmark for the yield of 10 years reached 1.46% this Friday. The benchmark has an effect on loans and mortgages. The new benchmark is 0.15% higher as compared to that of last week.
The investors of the stock market were threatened by the current dynamic nature of the yields. This took place last week. This is evident from the fact that there was choppy trading accompanied by a big sell-off that took place this Thursday.
The Nasdaq stock market went down to 4.9% for this week. This took place as the shares of the technology department witnessed a great hit. However, Standard &Poor’s 500 indexes saw negative growth. Its rate for the week went down to 2.4%.
The chief strategist for the investment of the CFRA, Sam Stovall, gave a statement with regard to the stock market. He said that the war between the stocks and bond yield will be over very soon. The stock markets are witnessing positive results when it comes to the economy. And so, the bonds will provide a further acceleration in the process.